Sterling or dollars in IB account?

[seancass]

I'm sure this has been addressed before but I cannot find the thread.

I currently have a few thousand pounds sitting in my broker account with IB. I am a UK citizen and the money is in my base currency of UK sterling. Is it better that it stays in sterling if I begin to trade e mini futures with it, or is it better to change it all into dollars and keep the cash in dollars as the base currency?

Am I right in thinking that IB effects an immediate exchange of pounds into the equivalent amount in dollars at the current exchange rate whenever a trade is entered and then converts any profit or loss back into sterling at the end of the trade?

Thanks.
Sean

 

[Jack o'Clubs]

I'm sure this has been addressed before but I cannot find the thread.

I currently have a few thousand pounds sitting in my broker account with IB. I am a UK citizen and the money is in my base currency of UK sterling. Is it better that it stays in sterling if I begin to trade e mini futures with it, or is it better to change it all into dollars and keep the cash in dollars as the base currency?

Am I right in thinking that IB effects an immediate exchange of pounds into the equivalent amount in dollars at the current exchange rate whenever a trade is entered and then converts any profit or loss back into sterling at the end of the trade?

Thanks.
Sean

Yes that's right. I trade $ denominated contracts with IB, but keep my base in £. For one thing, I don't want to open a whole new can of worms about hedging my exposure to $ moves if I convert my deposit to $. A big slide in the greenback, and that's your trading profits wiped out, lol.

 

[seancass]

Thanks Jack, that was my feeling too.

I have just been reading another post of yours in answer from the trader who wanted to trade futures and forex from the one account. Your advice was sound.

I watch the euro futures too but it doesn't seem to be as heavily traded as spot.

Thanks again.

Sean